IFC to partner with Bank of Industry and others to provide long-term, low-interest financing

IFC to partner with Bank of Industry and others to provide long-term, low-interest financing

The International Finance Corporation (IFC) is set to onboard the Bank of Industry (BoI), as well as some Deposit Money Banks (DMBs) and corporates, to provide them with long-term, low-interest funding to help Nigeria’s struggling industries, THISDAY has learned.

This onboarding will reportedly take place during the BoI-IFC joint conference, which begins today in Lagos. The convening chief executives and leaders from the financial and real sectors will discuss the current operating environment and identify synergies between participants to grow the country’s industrial base.

A source told THISDAY that the event is particularly unique because it will launch several initiatives aimed at supporting the economy through industry revival and job creation, adding that the BoI’s intervention would also help to reduce pressure on the forex market, moderate inflation, and alleviate poverty.
Dr. Olasupo Olusi, Managing Director/Chief Executive, BoI, and Sergio Pimenta, Regional Vice President Africa, IFC, will speak at the conference on the theme “Empowering Futures: A Collaborative Journey in Financing Nigeria’s Industrial Sector.”

A panel session on “Industrialisation as a Pathway for Economic Diversification” will be moderated by Dr. Tayo Aduloju, Chief Executive of the Nigerian Economic Summit Group (NESG), and will look at the role of the financial sector in fostering a vibrant industry.
The organizers believe that industrialization is critical to the country’s growth because it creates jobs, reduces poverty, raises living standards, fosters innovation, promotes economic growth, and promotes sustainable development.

According to them, repositioning Nigeria as an industrial hub could enhance local manufacturing capabilities and integration into regional and global value chains, enabling specialization, competition, and export orientation.
Nigeria could further harness the potential to become one of Africa’s green manufacturing hubs, capitalising on scaling renewable energy, developing sustainable industrial zones, and manufacturing low-carbon construction materials, chemicals, and fertilizers while eliminating gas flaring.

This will broaden the economic base and lead to a more resilient economy, mitigating the impact of oil price volatility and foreign exchange scarcity.
In addition, the Commissioner for Insuance (CFI) and Chief Executive of the National Insurance Commission (NAICOM), Mr. Olorundare Sunday Thomas, will, alongside other panelists, discuss “Increasing Access to Funding through Risk Mitigation.”.

The organisers argued that poorly structured projects (with respect to risk mitigation) have been identified as one of the largest barriers to accessing funding for projects, adding that often lenders have the liquidity and headroom to lend but are unable to underwrite the risk as presented.

The session will seek to unlock the role of the financial industry in collaborating to produce products that are more responsive to the needs of their clients in an affordable and sustainable manner.

Other intervention will aim at “Unlocking Sustainable Funding for Industrialization.”

According to the BoI, “the world is increasingly integrating environmental, social, and governance (ESG) considerations for accessing funds, reflecting the commitment to responsible and ethical business practices.

“Climate risk is a rising concern, and there are dedicated funds, such as the Global Energy Alliance for People and Planet (GEAPP), Korea Green Resilient and Innovative Development (K-GRID), the Green Climate Fund (GCF), and Climate Investment Funds, for green initiatives.

“Nigeria has diverse funding sources to drive sustainable industrialization and foster economic growth, including green, multilateral, bilateral, and private capital options. Nigeria can attract private capital through equity firms, venture capital, sustainable finance debt instruments, and impact investment funds.”